Islamabad: The Federal Board of Revenue has changed the previously announced formula for determining the value of foreign assets and also excluded the income earned during the current fiscal year from being turned white under the tax amnesty scheme, which is to expire in three days, reported a news source. The changes are feared to discourage people looking to avail the scheme.
The changes have come soon after backing for the tax amnesty scheme was extended by all stakeholders and the Supreme Court of Pakistan. The move may shake the confidence of people looking to avail it as it has left many, who have already availed the scheme, perplexed on the announcement made previously for holding no enquiry about the assets being turned white.
The FBR had earlier announced that it expects assets worth billions of dollars to be turned white through the scheme. With the recent changes, the experts believe that the results could change.
Explaining the matter regarding changes announced in excluding income earned during the current fiscal year, the official website of FBR states that declaration of the income earned between July 1, 2018 and April 9, 2018 cannot be filed as this incomes falls in the tax year 2018 and income tax returns for tax year 2018 is not due by the last date of applicability of the scheme or the commencement date of the Act.
According to an FBR spokesperson, the board cannot impose tax at two different percentages on income earned during a fiscal year.
